A 10-year U.S. Treasury bond with a par value of $ 1000 is currently selling for $ 1025.

The bond carries a 7.5% p.a. coupon payable annually. If purchased today and held to maturity, what is its expected yield to maturity?

Does your answer change if the coupon payments of 7.5% p.a. are made half-yearly (i.e. 3.75% every half -year)? How & why?

Please show step by step calculations and do not use financial calculator.